Q: What is financial literacy?

Ans: Financial literacy describes individuals’ ability to
manage their personal finances, their awareness of different investment options,
and their ability to assess risks and recognize opportunities to improve their
financial status.

Q: What is the difference between
different types of credit cards?

Ans: Choosing a suitable bank depends on a number of
different aspects, including the services offered by the bank, the location, the
types of benefits they offer to customers, in addition to their service charges
and interest rates. Researching the different types of banks available will help
you in choosing the bank that is most suitable for you.

Q: What are the different types of
bank accounts?

Ans: Generally, most banks offer two main types of
accounts, current and savings. A current account allows you to place your money
and carry out a number of banking services, like withdrawals and writing checks.
A savings account provides the additional feature of paying you an annual
interest sum for placing your money in the account. Islamic banks also offer
Shariah-compliant accounts.

Q: What steps do I have to take when
applying for a loan?

Ans: There are several steps you can take when applying for
loan, such as researching your different options, comparing issues like interest
rates and monthly installments, in addition to enquiring about additional fees,
like processing charges for example.

Q: What is the difference between
different types of credit cards?

Ans: There are different categories of cards you can
acquire, which differ in benefits, credit range and interest rates. The first
category is standard cards, which most people own. Prestige cards such as
silver, gold and platinum cards, usually offer a higher credit limit and lower
interest.

Q: What does it mean to default of
your credit card?

Ans: A credit card default occurs when an individual,
entity or business is unable to repay credit card debt. After a certain period
of time of continually accumulated debt, you are no longer able to use your card
until you repay some of the amount you owe.

Q: How do you avoid falling under
debt?

Ans: The best way to manage your debt is to keep track of
what you are making, your expenses and how much you owe, whether in terms of
loans or credit cards. Make sure you make all your payments on time, and try to
pay more than the minimum when possible to avoid accumulating interest.

Q: What does being bankrupt mean?

Ans: An individual or company can be declared as bankrupt
if they are unable to pay back fees they owe to debtors or to creditors.
Bankruptcy is a legal standing and occurs after a certain accumulation of debt
over a period of time.

Q: What steps should I take before
starting up a new business?

Ans: To start your own business, you need to research what
type of business you would like to have, decide how you are going to finance
your business, research available resources to provide support in terms of
funding, training, or marketing, and consider how much of your own money you
will place into the project and whether you will involve any partners.

Q: How do you decide when to invest in
a particular market?

Ans: A long-term approach to investing offers the best
strategy for taking advantage of the higher return potential. It’s best not to
try to “time the market”, or move in and out of investments in an effort to buy
before prices increase, or sell before they decline. The best alternative is to
develop a long term strategy.